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'Will there be an ISA season this year?' blog discussion

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'Will there be an ISA season this year?' blog discussion

9 replies 3.4K views
This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.




Please click 'post reply' to discuss below.

Replies

  • VT82VT82 Forumite
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    I still hope that Santander will have to come up with the goods. I'd love to have a nosey at their cashflow forecast to find out.

    They must have got massive inflows last year with their e-ISA Issue 9, and because of their policy of having the reversion rate down at nothing, they can't rely on the people sticking around thinking 'the 1.5% I get after the bonus maturity will do', like you would see under some other pricing strategies.

    Plus they'll have e-saver Issue 5 coming up for maturity, with the same reversion rate issue. So even with FLS, you'd think they'll need to compete for some funds at some point.

    Of course they'd need competition from at least one other provider before we'd actually get decent rates, not just 0.01%-0.05% above the next best.

    And they'll probably only focus on replacing the money through either the ISA or the non-ISA channel. I reckon they might sacrifice the ISA battle for the non-ISA battle; ISA rates are still up at 2.5%, and NS&I have hopefully drawn the line in the sand at 2.25%, so they'll probably stick to a best-buy non-ISA as they'd get bucketloads of money in at 2.30%.
  • Gordon_the_MoronGordon_the_Moron Forumite
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    Hopefully there might be a deal like Nationwide's Flexclusive ISA come along where you need to have or get a current account to get it, that wasn't so much about getting ISA money is as getting current account customers, the rate almost certainly wouldn't be as high as the flexclusive 4.25% but there may be something half respectable? Hoping! :(
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  • C_MababejiveC_Mababejive Forumite
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    I dont think so. There will be marketing campaigns to lure in suckers to lock in money for extended periods for practically nothing but I dont think there will be any "good" deals save for perhaps special deals for existing customers only. Even those i think will be poor. It may even be the time to ditch the ISA for the next few years. I wont be putting any cash into them this year unless something i cant refuse comes along.
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  • Gordon_the_MoronGordon_the_Moron Forumite
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    If you ditch it for a few years though you may have several tens of thousands of pounds less ISA protected when rates do improve :question:

    Tricky one
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  • zerogzerog Forumite
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    If you ditch it for a few years though you may have several tens of thousands of pounds less ISA protected when rates do improve :question:

    Tricky one

    But you have until 5 April 2014 to protect next year's money. So it depends what you think the savings market will be like in 1 year.
  • rb10rb10 Forumite
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    Hopefully there might be a deal like Nationwide's Flexclusive ISA come along where you need to have or get a current account to get it, that wasn't so much about getting ISA money is as getting current account customers, the rate almost certainly wouldn't be as high as the flexclusive 4.25% but there may be something half respectable? Hoping! :(

    Remember that if you've already got the Nationwide Flexclusive ISA, you can add your 2013/14 allowance to the same account from 6 April, and earn 4.25% on the whole balance.
  • ses6jwgses6jwg Forumite
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    VT82 wrote: »
    I still hope that Santander will have to come up with the goods. I'd love to have a nosey at their cashflow forecast to find out.

    They must have got massive inflows last year with their e-ISA Issue 9, and because of their policy of having the reversion rate down at nothing, they can't rely on the people sticking around thinking 'the 1.5% I get after the bonus maturity will do', like you would see under some other pricing strategies.

    Plus they'll have e-saver Issue 5 coming up for maturity, with the same reversion rate issue. So even with FLS, you'd think they'll need to compete for some funds at some point.

    Of course they'd need competition from at least one other provider before we'd actually get decent rates, not just 0.01%-0.05% above the next best.

    And they'll probably only focus on replacing the money through either the ISA or the non-ISA channel. I reckon they might sacrifice the ISA battle for the non-ISA battle; ISA rates are still up at 2.5%, and NS&I have hopefully drawn the line in the sand at 2.25%, so they'll probably stick to a best-buy non-ISA as they'd get bucketloads of money in at 2.30%.

    Santander's only interest is growing banking stock the savings book is not their focus.
  • Gordon_the_MoronGordon_the_Moron Forumite
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    rb10 wrote: »
    Remember that if you've already got the Nationwide Flexclusive ISA, you can add your 2013/14 allowance to the same account from 6 April, and earn 4.25% on the whole balance.

    Thanks, I know that but it only last until November. If there is an account offering an at least marginally attractive rate in April allowing transfers in I will be opening one and transferring £1 from my 2012/2013 allowance from the Flexclusive to it, then come November transfer the lot into it!
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  • Pizza_ManPizza_Man Forumite
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    ISA rates are shocking. I applied to stay with Halfax at 3% fixed in May 2013, by the time I got the renewal documentation it was 2.25% for 3 years. I shall move the money w/in ISA wrapper elsewhere within the 14 day cooling off period. Thank you Mr Osborne for giving the banks cheap cash rather than working for their living like the rest of us. Your next trick will be to inflate house prices with your latest ill-conceived scheme.
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